Mining magnate loses bid for ICAC letter

Mining magnate Travers Duncan has lost his bid to gain access to a confidential legal letter, which he argues could show NSW's corruption watchdog commissioner was biased in favour of the state government.

Mr Duncan has launched legal action attempting to prevent the Independent Commission Against Corruption (ICAC) publishing findings of its inquiry into the granting of mining exploration licences in NSW.

The ICAC is investigating claims former Labor mines minister Ian Macdonald rigged a 2008 tender process for coal exploration licences in the Bylong Valley to benefit Labor powerbroker Eddie Obeid and his family.

Mr Duncan was an investor in Cascade Coal, a mining company that bid successfully for one of the licences over land at Mt Penny, in the Bylong Valley.

In a hearing before the NSW Supreme Court on Thursday, Mr Duncan sought to gain access to correspondence between senior counsel Bret Walker and ICAC solicitor Roy Waldon from December 20 last year.

Barrister Gerald Ng said the letter was relevant to his client's case as it was subsequently referred to in a February letter that was tabled to parliament by NSW Premier Barry O'Farrell.

The government had sought advice from ICAC Commissioner David Ipp about whether it should suspend or cancel licences granted by Mr Macdonald.

Mr Ng argued the December letter could show Mr Ipp "may have by his interactions with the executive government in NSW ... aligned himself with the purposes of the government".

He submitted the government had since expressed views contrary to the interests of Mr Duncan.

But barrister Stephen Free said the letter was of no relevance to the legal proceedings brought by Mr Duncan and he had to prove beyond "speculation" that it was so.

Justice Peter Garling - who was given a sealed copy of the confidential letter - said while he couldn't comment directly on its contents due to client-lawyer privilege, he was satisfied it had no relevance to any argument that might demonstrate that Mr Ipp had any bias in favour of the government against Mr Duncan.